I want to put in a background image, and above the background image I want to superimpose a transparent picturebox and tried to put the second picturebox like so:
pictureBox2.BackColor = Color.Transparent;
But it did not work. Basically, I would like to do this:
Transparency in Windows Forms isn't implemented as one would expect. Having a transparent background actually means that a control uses the background of its parent. This means that you need to make your overlay control a child of the original picture box:
If you want the overlay picture box to contain a transparent image you need to actually change the image: